American Petrofina, Inc. v. Dorchester Gas Corp.
This case involves an appeal by American Petrofina, Inc. (Fina) seeking contractual indemnity from Dor-chester Gas Corporation after Fina settled a personal injury claim with Don Rhea, a Dorchester employee. Rhea was injured at a refinery that Fina had sold to Dorchester. The trial court had ruled against Fina, concluding that the indemnity clause in their sales agreement was insufficient and that Fina's $300,000 settlement with Rhea was unreasonable. The appellate court reversed this decision, finding that the indemnity clause clearly and unequivocally required Dorchester to indemnify Fina under Texas law, specifically article 8306, section 3(d) of the Texas Workers’ Compensation Act. The court also determined that the settlement amount and Fina's incurred attorney's fees of $19,489.73 were reasonable, ultimately rendering judgment in favor of Fina for $319,489.73.